With the start up of so many budget airlines, there is immense competition amongst airlines for passengers. Looking at the european situation, where intense competition reduced the profitability of numerous airlines and even forced a few into bankruptcy, do you think that the new start-ups and the original airlines will be able to survive the competition. There is greater choice for consumers, but is this necessarily good for the society? How can airlines survive the competition? How will they keep prices low with soaring fuel prices? Will we see some of the new airlines declare bankruptcy?
"What counts is not necessarily the size of the dog in the fight-it's the size of the fight in the dog" ..
The government would not give out that many licenses such that the competition will be too strong and cause budget airlines to crash, as they did in Europe. Just look at the dire state of airlines in Europe. I sure hope the management here has some sense to do something to prevent the same thing from happening here. But what can they do?